STRATEGIES TOWARDS NATIONAL SELF-SUFFICIENCY LEVEL: ESTATIZATION INITIATIVE AS MODEL TO INCREASE RICE PRODUCTIVITY

Transcription

1 STRATEGIES TOWARDS NATIONAL SELF-SUFFICIENCY LEVEL: ESTATIZATION INITIATIVE AS MODEL TO INCREASE RICE PRODUCTIVITY MD ZUKI,I., FOUZI,A., KAMARUDIN,D., & ERNNIE, O. NAPICEX SEPTEMBER 2015 THE PACIFIC SUTERA HOTEL, KOTA KINABALU, SABAH

2 PRESENTATION OUTLINE BACKGROUND STRATEGIES TO INCREASE PRODUCTION EPP 10: STATUS AND ACHIEVEMENT CONLUSION

3 The Historical Profile (Pre-Muda Project) Paddy has for centuries been cultivated in coastal Plains of Kedah and Perlis states. Paddy cultivation then was carried out using local tradition implements and was planted once a year. In general, about 72% of farmers lived under poverty level.

4 Policy Changes For Rice Production From 1955 to the immediate post independence years, a policy of self-sufficiency in rice was adopted by the government. In accordance with the policy, under the First Malaysia Plan ( ) the Muda Irrigation Project was launched.

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6 Muda Agricultural Development Authority (MADA) Established on the 30 th of June 1970 (PARLIAMENT ACT 70, MADA 1972)

7 MUDA IRRIGATION PROJECT The largest development project during First Malaysia Plan ( ) Total Project Cost = RM 248 million (funded by World Bank) Infrastructure development started in the year 1966 Fully operational by 1974

8 OBJECTIVES To uplift the living standard of the majority of the rural population To increase rice production for the national requirement VISION To be a leading agency in the development of a modern, efficient and stable rice industry in Malaysia, and also as a prime mover of socioeconomic development for farming community in the Muda Area

9 Muda Irrigation Scheme is about 130,282 ha and named Muda Area. 20,304 ha. Langkawi 105,851 ha. MUDA IRRIGATION SCHEME It covers: *108,581 ha (Northwestern Kedah State) and 21,701 ha (Southern Perlis State) 77% of the land is under paddy cultivation (100,685 ha) 55,130 farmers operate in Muda Area MADA was formed by integrating the functions of 3 main Departments (Dept. of Agriculture, Farmers Organisation and Drainage and Irrigation Dept.)

10 PERLIS REGION II (31,694 Ha) Ahning Dam REGION I (16,320 Ha) Padang Sanai River Pedu Dam 2 Padang Terap River Straits of Malacca KEDAH REGION IV (24,711 Ha) REGION III (21,385HA) Muda Dam RESERVOIR STORAGE MCM / (Ac Ft) SURFACE AREA Sq. Km 2 CATCH-MENT AREA Sq Km MUDA 154 (125,000 ) PEDU 1,080 (875,000 ) AHNING 274 (222,300 ) TOTAL 1,508 (1,222,300 ) 101 1,277

11 The Historical Profile ( During Muda Project) First pilot project of double cropping was conducted in 1968 Double cropping was fully commenced in 1974 In general, about 72% of farmers lived under poverty level.

12 Milliom metric tons 3 CONTRIBUTION OF MUDA AREA TO NATIONAL PADDY PRODUCTION (%) % 37 % 37 % 36 % 36 % 38 % Malaysia MADA YEAR

13 PRODUCTION YEAR TOTAL MALAYSIA PRODUCTION ( Metric tons) TOTAL MADA PRODUCTION ( Metric tons) PADDY RICE PADDY RICE % MADA CONTRIBUTION TO MALAYSIA RICE AND PADDY ,511,043 1,632, , , ,464,831 1,602, , , ,578,519 1,676, , , ,599,382 1,689, , , ,615,845 1,700, , , ,739,395 1,780,606 1,053, ,525 38

14 TONS/HA ANNUAL GROSS AVERAGE YIELD 5 6

15 STRATEGIES USED TO INCREASE YIELD 1. Centralized Farm Management 2. Usage of Hybrid Seed 3. Efficient Water Management 4. Strengthening the extension and Human Capital 5. The Use of Fertilizer According to Zoning (Cluster) 6. Farm Mechanization

16 1 Centralized Farm Management Systematic & efficient establishment of 50,000 hectare paddy estate. Overcome the problems of ageing farmers and uneconomic paddy field size Reduction of operational cost of individual farming

17 2 Efficient Water Management Improvement of tertiary infrastructure density from 18m/hectare to 30m/hectare. Implementation of new irrigation technologies e.g recycling of drainage water.

18 3 Usage of Hybrid Seed High yield varieties (including disease tolerant hybrid varieties) with sustainable high yielding package and MyGAP MADA is collaborating with MARDI and interested parties to conduct trials/observation on the potential hybrid rice varieties for large scale cultivation.

19 4 Strengthening the extension and Human Capital A comprehensive program to re-train extension staff being conducted 700 personnels The establishment of MADA Rice Training Centre (MRTC) for future young farmers.

20 5 The Use of Fertilizer According to Zoning Re-conduct soil survey for Muda Area to remap the soil fertility zones Collaboration works with DAO, MARDI and private sectors

21 6 Farm Mechanization Program to reduce post harvest losses MARDI study indicated 28% post harvest loses Conduct and promoting tonnage based harvesting Study suitable agricultural machineries for Muda Area Conduct training to machineries operators a collaboration training between MRTC and RTD (JPJ)

22 ESTATIZATION INITIATIVE AS MODEL TO INCREASE RICE PRODUCTIVITY IN MUDA AREA

23 PROJECT BACKGROUND NKEA EPP 10 PADDY ESTATE PROJECT was started to solve THREE (3) MAJOR ISSUES of paddy development sector: INFRASTRUCTURE INFRASTRUCTURE DENSITY LOW 18 Meter/Hectare FARM SIZE AVERAGE FARM SIZE UNECONOMIC 2.12 Hectare FARMER S AGE AVERAGE FARMER S AGE LESS PRODUCTIVE 60.2 Years Old NKEA EPP 10 PADDY ESTATE PROJECT WAS STARTED IN 2011 (SEASON 2/2011)

24 Centralized Farm Management (NKEA) Improve farm management Entrepreneur farmers Rice estates Exit programme for traditional farmers Objectives Increase rice production to achieve SSL Increase farmers income Accelerate Technology use New varieties and production technologies Professional seed farming New milling technologies Expand Infrastructure Improvement of irrigation density for better water distribution at field level Yield increase from 5 mt / ha to 6.5 mt / ha through better management and irrigation Yield increase from 6.5 mt / ha to 8 mt / ha through better seed varieties Cumulative GNI contribution of RM3.2B up to 2020 EPP 10: Strengthening and Scaling-up Productivity of Paddy Production in Muda Area

25 TERTIARY SYSTEM DEVELOPMENT PROJECT MADA - MUDA II ( 36% ) - 30 m/ha. - NON-MUDA II ( 64% )-11 m/ha. AVERAGE OF 18 m/ha KADA - 24 m/ha. KRIAN - 31 m/ha. KEMASIN SEMARAK - 33 m/ha. TRANS PERAK - 36 m/ha. PULAU PINANG - 39 m/ha. SG. MANIK - 40 m/ha. BARAT LAUT SELANGOR - 43 m/ha. BESUT - 48 m/ha. MUDA MUDA II PROJECT PROBLEMS AREA PROJECT TARC/MADA PROJECT MUDA III PROJECT PADDY ESTATE PROJECT TERTIARY IRRIGATION SYSTEM = 34,989 HA. (36%) SECONDARY IRRIGATION SYSTEM = 61,569 HA. (64%)

26 DEVELOPMENT OF TERTIERY IRRIGATION SYSTEM FOR 128 IRRIGATION BLOCKS = PADDY FIELD AREA 61,569.3 HECTARE. 16 IRRIGATION BLOCKS IN PERLIS STATE = PADDY FIELD AREA 9,801.6 HECTARE (16%) IRRIGATION BLOCKS IN KEDAH STATE (KUBANG PASU; KOTA SETAR; PENDANG; YAN; POKOK SENA) = PADDY FIELD AREA 51,767.7 HECTARE (84%).

27 2 1970s TRANSITION OF RICE FARMING IN MUDA AREA 1980s s 2011 Individual Farming Labour Intensive. Transplanting Culture. Paddy Yield at 4.2 ton/ha Secondary Infra 11m/ha Group Farming Labour Crisis Mechanisation Direct Seeded Culture Coordination of activities Paddy Yield at 4.7 ton/ha Tertiary Infra introduced Semi-Estate launched Credit Facilities Marketing of rice coordinated by FOs Recycling Station Introduced Paddy Estate launched Centralized management 10-ton technology package Rice Check Yield at 6 ton/ha NKEA Project launched Government Support Commercial Entity Will involve entire value chain Paddy Collection Centre All by ,,000 ha of paddy estate by 2020

28 3 FARMERS INVOLVEMENT/PARTICIPATION IN THE WHOLE VALUE CHAIN OF PADDY/RICE INDUSTRY SEED PRODUCTION SEEDLING PRODUCTION MECHANIZATION SERVICES WHITE RICE PRODUCTION PADDY PRODUCTION AGRICULTURE INPUTS DISTRIBUTION

29 3 schemes to encourage small scale farmers to exit Scheme Description Attractiveness to landowners Attractiveness to operators Fixed rental Landowners paid fixed rental per season, e.g., RM2,000 in MADA area Typically paid 5-10 seasons in advance All revenue and costs go to operator No risk (e.g., yield / paddy price drop) Capture all profits from increased productivity Profit-sharing Operator manages the land All revenue and costs are born by the enterprise, i.e., split between landowner and operator However, landowner guaranteed minimum income equivalent to market rental rate Risk and gainsharing Risk and gainsharing Management fee Operator manages the land All revenue and costs go to landowner Operator earns management fee of RM70 per tonne of net yield harvestedoutput Captures most of the gain from higher productivity No risk, e.g., paddy price drops Max gain, max risk Min gain, min risk

30 SOP Reference for operational and financial management Main reference to parties involve in EPP 10 MADA staff AFOs (PPK) staff

31 NKEA EPP 10 PROJECT ANNUAL IMPLEMENTATION PLAN NO ACTIVITY 1 Identifying areas at the PPK s Location 2 Introduction Campaign / Briefings 3 Application By Farmers 4 Send Proposed Areas To The Region 5 Region Level NKEA Meetings 6 Send Proposed Areas To Headquarters (BPW) 7 Headquarters Level NKEA Meetings Paddy Estate Project Participation Campaign / 8 Briefing Offer to Participants (LOI) / Reception Of 9 Participants (LA) 10 Report LOI & LA Status To the Region Regional party Send Status (LOI / LA) to 11 Headquarters (BPW) Change Name of Kad Daftar Pesawah (KDP) to the General Manager of PPK s Name and 12 Coordination (Screening) Of Application by the PPK Approval of the application by PPK Through 13 Board of Directors Meeting 14 Agreement Between Participants and PPK Signed a Letter of Agreement (Office of the Inland 15 Revenue LHDN) Region Office Deliver Agreement Letter 16 (Softcopy) To Headquarters (BPW) 17 Establishment Of Project Management Team Preparation Of Incentives Acknowledgment 18 Idocument And Distribution Of Operations Capital (BIP) 19 Distribution of Incentives To Participants Region Deliver The Incentives Acknowledgment 20 Document To Headquarters (BIP) 21 Project Implementation JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC Nota : Headquaters Region PPK

32 ORGANIZATIONAL STRUCTURE OF PROJECT IMPLEMENTATION COMMITTEE AT PPK (SUPERVISOR) GENERAL MANAGER PPK FARMERS INSTUTIONAL DEVELOPMENT (3) CHIEF OF EXTENSION AREA IRRIGATION OVERSEER NON PADDY IAT PADDY ESTATE (PROJECT MANAGER) 2,000 HECTARE FINANCIAL ADMIN (PPK CLERK) PADDY ESTATE ASSISTANT MANAGER (250 HECTARE) LINE OPERATOR PROJECT SUPERVISOR (50 HECTARE) PROJECT SUPERVISOR (50 HECTARE) PROJECT SUPERVISOR (50 HECTARE) PROJECT SUPERVISOR (50 HECTARE) PROJECT SUPERVISOR (50 HECTARE) *458 FIELD SUPERVISOR

33 PROJECT SUPERVISORS ACTIVITIES 458 Field Supervisor appointed by AFOs (PPK)

34 EPP 10: PROMOTIONAL CAMPAIGN Extension activities to explain and convince farmers to participate in the EPP 10 program Extension activities to farmers and field supervisors

35 ACHIEVEMENT TOTAL PROJECT AREA

36 2011 (BATCH A) 2012 (BATCH B) 2013 (BATCH C) 2014 (BATCH D)* TOTAL REGION AREA (Ha) NO. OF PARTICIPANT AREA (Ha) NO. OF PARTICIPANT AREA (Ha) NO. OF PARTICIPANT AREA (Ha) NO. OF PARTICIPANT AREA (Ha) NO. OF PARTICIPANT I 1, , , ,718 II 1, , , , , ,768 III 1, , , , ,347 IV 1, , , , , ,775 Total 5, ,932 5, ,028 5, ,833 5, ,815 20, ,608 * The establishment of the Group D in the season 2/2014 is based on two types of land management model Management Fee Model covers 5, hectares and Rental/Lease Model covering 26,032 hectares.

37 REGION III - PENDANG

38 PPK B-III, ALOR SENIBONG

39 STATUS PENCAPAIAN HASIL ROJEK MUSIM 1 BEFORE PROJECT (Average yield of Year For season 1) Season 1/2012 AFTER PROJECT Season 1/2013 Season 1/ * Note : * Note : 1. Average yield of Project is based on CCS. 2. Average farm size is 2.12 ha

40 AVERAGE YIELD OF PROJECT FOR SEASONS 2 BEFORE PROJECT (Average yield of Year For season 2) Season 2/2011 AFTER PROJECT Season 2/2012 Season 2/2013 season 2/ * * * Note : 1. Average yield of Project is based on CCS. 2. Average farm size is 2.12 ha 3. Due to severe blast and BLB

41 YIELD (TONS / HECTARE) YIELD TRENDS IN PROJECT AREA Season 1 Season 2 YEARS

42 IMPROVEMENT TOWARDS BETTER PROJECT MANAGEMENT

43 OPERATIONAL MANAGEMENT SYSTEM OF NKEA PADI PROJECT (SOPPAN) SOPPAN web-based system and internally developed Main purpose: to improve the financial management of the PPK which involved with NKEA EPP 10 Project

44 SOPPAN Main Menu Sub Menu

45 PADDY COLLECTION CENTRE Paddy Collection Centre connected online to AFO (PPK)

46 BENEFITS TO FARMERS Lower cost of production e.g land preparation, crop protection, harvesting and transportation of produce Rebate end of the seasons Seed grant provided by FOs Dividends for FOs members

47 BENEFIT TO FOs (2014) Net Profit (RM) Net Profit (RM)

48 PROFIT (RM MILLION / YEAR) PROFIT OF PROJECT TO AFOs YEARS

49 Challenges Farmers attitude towards the project Wait and see Resistant of brokers/machineries operators Resistant from tenants Developing or forming personnel at FOs level Human resources development e.g training of Field Supervisors

50 Conclusion NKEA Agriculture: EPP 10 Program is one of the ways to improve the farm productivity and efficiency towards national target of 100% Self Sufficiency Level. The program is proven to solve the issues of ageing farmers and uneconomic farm size It is a way forward for farmers to involve in the whole value chain of paddy/rice industry

51 TERIMA KASIH